Carry Trade
A carry trade borrows or sells a low-interest-rate currency to hold a higher-interest-rate one, aiming to earn the interest-rate difference. It is exposed to exchange-rate moves that can erase or exceed that difference.
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Currency Pair
A currency pair quotes the price of one currency, the base, in units of another, the quote currency. In EUR/USD the euro is the base and the US dollar is the quote, so a price of 1.2500 means 1 euro costs 1.2500 US dollars.